You can streamline your procure-to-pay process by implementing a procurement card program in which your employees purchase items directly from suppliers using a procurement card. The procurement card issuer then sends transaction files directly to you (the employer). You can import procurement card transaction files from your card issuer directly into Payables. Then, you can automatically generate transaction accounting distributions and create invoices to pay the card issuer.

This will help you reduce transaction costs and eliminate low-amount invoices. For additional flexibility, your employees can use Self-Service Web Applications to verify transactions and to override default transaction accounting.

Payables Procurement Card Overview

This section gives you an overview of the Payables procurement card process. Each step refers you to the sections in the documentation where you can find more information on the step.

1. Set up Payables and Self-Service Web Applications credit card programs. See: Setting Up Credit Card Programs.

2. Import procurement card transactions. The card issuer sends you a file with the card transactions and charges. You load this data into the AP_EXPENSE_FEED_LINES table. See: Payables Procurement Card Transactions Interface Table.

3. Validate imported procurement card transactions. Submit the Procurement Card Transactions Validation program. This program creates distribution records in the AP_EXPENSE_FEED_DISTS_ALL table, for transactions where the CREATE_DISTRIBUTION_FLAG is Y. Otherwise, you can create distribution records manually in the Transaction Distributions window. This program also identifies transaction exceptions, such as card numbers that are undefined, and builds the default GL Accounts for the transactions. See: Procurement Card Transactions Validation.

   Note: If the CREATE_DISTRIBUTION_FLAG is set to N, ensure that the STATUS_LOOKUP_CODE column is set to 'Approved' in the AP_EXPENSE_FEED_DISTS table.

4. Employee verification. Submit the Procurement Card Transactions Verification Process. This executes the AP Procurement Card Employee Verification Workflow as you have defined it. If verification is required, an employee can verify transactions directly from a workflow notification. The employee can also use Self-Service Web Applications to verify transactions. If verification is not required, an employee will receive a notification indicating that transactions were posted to the employee's card account. See: AP Procurement Card Employee Verification Workflow.

5. Manager approval or notification. Submit the Procurement Card Transactions Approval Process. This executes the AP Procurement Card Manager Approval Transaction Workflow as you have defined it. If approval is required from the manager, a manager can approve an employee's procurement card transactions directly from a workflow notification. If approval is not required, a manager will receive a notification that lists all procurement card transactions incurred by the manager's direct reports. See: AP Procurement Card Manager Approval Transaction workflow.

6. Adjust transaction distributions. If card program administrators need to adjust or create transaction distributions, use the Procurement Card Transactions window. See: Procurement Card Transactions Window.

7. Create invoices. You submit the Create Procurement Card Issuer Invoice program to move the transaction data from the AP_EXPENSE_FEED_DISTS_ALL table to the AP_INVOICES_INTERFACE and AP_INVOICE_LINES_INTERFACE tables. You can summarize transactions by GL Account. See: Create Procurement Card Issuer Invoice.

   You submit the Payables Open Interface Import Program to create invoices in Payables from the invoice data in the Payables Open Interface tables.

8. The invoices are ready for accounts payable validation and payment. See: Invoice Validation.